Warburg Pincus signs agreement to acquire majority stake in Reiss Holding

14 April 2016 (Last Updated April 14th, 2016 18:30)

Leading global private equity firm Warburg Pincu has entered into an agreement to acquire a majority stake in Reiss Holding for £230m.

Leading global private equity firm Warburg Pincu has entered into an agreement to acquire a majority stake in Reiss Holding for £230m.

Founded by David Reiss in 1971, REISS is an international fashion brand that currently operates from more than 160 locations in 15 countries, and also has an e-commerce presence.

In the year to this January, the company generated sales of £146m and EBITDA of £24.4m.

The partnership with Warburg Pincus will enable Reiss to expand further both in the UK and international markets, particularly in North America, Asia and Australia.

"We believe there is a significant opportunity to build on this success and accelerate development internationally."

Chairman David Reiss will retain a significant investment in the business and continue in the roles of chairman and CEO.

He said: "We have built a great business providing our customers with timeless luxury at affordable prices and I am confident that working together we will be able to build REISS into a truly global fashion brand."

Warburg Pincus managing director Paul Best said: "As long-term growth investors, we look forward to partnering with David and his team and supporting the global expansion of REISS.

"The business has built an enviable position in its core UK market, with a broad and loyal customer base, and we believe there is a significant opportunity to build on this success and accelerate development internationally."

Morgan Stanley served as financial adviser to Reiss Holdings, and Squire Patton Boggs acted as the legal adviser for the deal to Reiss Holding, while Financo served as financial adviser and Freshfields Bruckhaus Deringer as the legal adviser to Warburg Pincus.